Despite improvements in recent years, poverty in the Philippines remains high, and the pace of poverty reduction has been slower compared to other East Asian countries. Economic growth in the Philippines was less inclusive and slower than in high-performing neighbors, resulting in a lag in poverty reduction. Between 2006 and 2015, the country's poverty rate, measured by the international poverty line (US$1.90/day), declined by only 0.9 percentage points annually, compared to 2–2.5 percentage points in China, Indonesia, and Vietnam. When measured by the lower-middle-income-class poverty line (US$3.20/day), poverty declined by just 1.3 percentage points annually, while same three countries saw reductions of 3–5 percentage points.
In 2023, the Philippine Statistics Authority (PSA) set the national poverty threshold at ₱13,873 per month for a family of five (approximately US$250), or about ₱92.49 per person per day (around US$1.67). Individuals are considered "poor" if their income falls below this threshold, which is intended to cover basic food and non-food needs. However, the PSA acknowledged that the food component of this threshold was not sufficient to meet the minimum daily dietary or nutritional requirements, suggesting that even those not classified as "food poor" may still be undernourished. In 2023, official government statistics reported that the Philippines had a poverty rate of 15.5%, (or roughly 17.54 million Filipinos), significantly lower than the 49.2 percent recorded in 1985 through years of government poverty reduction efforts. From 2018 to 2021, an estimated 2.3 million Filipinos fell into poverty amid the economic recession caused by the COVID-19 pandemic.
National Economic and Development Authority (NEDA) deputy director general Rosemarie Edillon attributed the overall decline of poverty in the Philippines to a generally low and stable inflation, improved incomes, and higher employment rates during the period. In 2022, the poverty situation in the Philippines has seen a steady improvement.
Some of the many causes of poverty are bad governance, corruption, a political system dominated by political dynasties, the lack of available jobs, and vulnerability to environmental disasters.
Poverty in the Philippines means the condition where individuals or families do not have enough income or resources to meet their basic needs such as food, shelter, clothing, healthcare, and education. It reflects a lack of access to opportunities that allow people to improve their living standards. In simple terms, poverty in the Philippines means struggling to afford the essentials needed for a decent and secure life.
Definition As of 2022, the Philippine Statistics Authority has set the poverty threshold at PHP12,030 per month for a family of five, or about PHP80 per day per person to spend on food and non-food requirements.
Background
, about 19.99 million Filipinos lived in poverty. Through various anti-poverty programs, such as the Comprehensive Agrarian Reform, Lingap Para sa Mahirap, and the Social Reform Agenda, the Philippines has been through a long battle to ameliorate that statistic. Despite these governmental efforts, the Millennium Development Goal milestone of poverty reduction has been a slow process.
Demographics
People living in poverty in the Philippines are most likely self-employed farmers, fishermen, or agricultural workers. Three-quarters of these people live in severe disaster-risk areas that are highly rural. In 2015, about 58 percent of poor households have more than six members. Education overall has improved over time; from the ages of 15–24, over 75 percent have completed secondary education or above in 2015. Specifically in poor households, however, over 60 percent of families have education only up to elementary school.
As of 2022, the Bangsamoro Autonomous Region in Muslim Mindanao has the highest incidence of poverty in the country at 37.2%, while Metro Manila has the lowest at 3.5%.
Children in the Philippines are particularly vulnerable to the effects of poverty and suffer high rates of mortality for those below 5 years old. The UNICEF and World Bank reported that as of 2022, more than 32 million children were living in poverty in the Philippines, including 5 million children living in extreme poverty.
Over 10 million women live in poverty in the Philippines.
A 2024 survey conducted by the Social Weather Stations from September 14 to 23, 2024, estimated 16.3 million Filipino families considered themselves poor compared to 12.9 million in March 2024. Self-rated poverty was highest in Mindanao (67 percent), followed by Visayas (62 percent), and Luzon (55 percent, excluding Metro Manila). Metro Manila was the lowest self-rated poverty at 52 percent.
Hunger In 2025, the Philippines ranked as the most food insecure country in the Southeast Asian region. The Philippines ranked 67th out of 127 countries in the Global Hunger Index of 2024, with the level of hunger described as "moderate". According to a 2018 study by the United Nations World Food Programme, while nearly all households in the Philippines can afford a diet that provides enough energy, only one third of the overall population can afford a diet that provides sufficient nutrients. Around 2.9 million Filipino families experienced hunger in the third quarter of 2022, according to a survey by the Social Weather Stations.
Homelessness
Out of the country's population of about 106 million, an estimated 4.5 million were homeless according to the Philippine Statistics Authority; of these, 3 million were in the capital Manila. The Philippine government allotted ₱65.43 billion for housing projects from 2015 to 2022. According to the Philippine Commission on Audit, the National Housing Authority failed to achieve its targets repeatedly, citing instances of project delays and unoccupied housing units, causing worsened homelessness in the country.
Health
Out-of-pocket health expenses make up 45% of the average household's health expenses. These expenses, meaning those not covered by government or private insurance, are high for Filipino families and tends to worsen their health and their poverty.
The Philippines only has a ratio of 17.1 health care workers for every 10,000 people, compared with the recommended 44.5 for every 10,000 needed to attain the Sustainable Development Goals. The poorest provinces have the least developed health services, with gaps in health outcomes exacerbated by gaps in income and wealth inequality, according to IBON Foundation. In the Bangsamoro Autonomous Region in Muslim Mindanao, which had the highest poverty incidence in 2021, there are only 8.9 health care workers for every 10,000 people.
Causes of poverty
Poverty in the Philippines has been linked to bad governance, corruption, and a political system dominated by political dynasties. The country's poorest provinces are ruled by political dynasties. Additionally, there are the problem of extractive institutions that hinder the country's economic growth.
Poverty in the Philippines also had its roots from land inequality resulting from land policies under colonization by Spain and the United States.
The Philippines, after its independence in 1946, historically pursued an import substitution industrial policy, penalizing primary and agricultural sectors through tariffs and overvaluing the peso. These policies between the 1950s and 1980s diverted resources from agriculture and favored manufacturing. Price controls, import restrictions, and government interventions in sectors like rice, coconut, and fertilizer further depressed agricultural incomes.
The overvalued peso, tariffs, and government regulation negatively impacted agricultural investment and productivity. The coconut sector, once the country's most important agricultural industry, experienced stagnant productivity between 1982-85 and 1962-66. Low agricultural productivity continues to hinder overall economic growth, partly due to maintained tariffs and slower growth in the agriculture, fishing, and forestry sectors compared to other sectors.
Natural disasters have exacerbated poverty in the Philippines. Natural disasters in the Philippines have caused US$23 billion in damages since 1990, which continues to delay the development process. The frequent occurrences of typhoons cost the country lives, illness, malnutrition, and denial of education and health services. Filipino farmers are some of the most vulnerable, because floods and landslides severely affect their crops and income.
The poorest populations work in agriculture and live in areas prone to natural disasters compared to the wealthier population. There is an inadequate number of available good jobs, and a lack of investment in education, which leads to such a high inequality of income. However, the government has plans focused on reducing poverty with the objective of improving the lives of the poorest segments of the population.
The pattern of poverty growth is common in rural areas, but there has been a rise in poverty in urban areas. Cities in the Philippines have been faced with an increase in poverty due to a lack of well-paid employment.
Joblessness and low pay
According to IBON Foundation, self-rated poverty rises due to the lack of good job opportunities, low wages, and high cost of living, exacerbated by inflation.
Despite fast increases on employment opportunities beginning in the 1990s, the unemployment rate remains high in the Philippines due to overpopulation, increased participation in the labor force, lack of opportunities, and weak industry resulting in inadequate job creation.
The majority of the working poor in the Philippines are informal or non-wage workers who are not protected by the Philippine Government's minimum wage policy. Only about half of the working poor are wage workers. In 2015, over 90 percent of low-paid workers were employed informally, making them ineligible for minimum wage protection. Consequently, less than 2 percent of the working poor benefit from the minimum wage policy, highlighting its limited effectiveness in addressing in-work poverty.
Contractualization
High cost of living Amid stagnant wages, food inflation affects poor families more than the rest of the population. Inflation levels reported by the Philippine Statistics Authority in 2024 was driven by rising electricity rates, more expensive meat and fruits, and rising oil prices. Policy suggestions to address poverty and the effects of inflation include wage hikes and ensuring the affordability of basic needs, and developing the capacity to produce food locally to lessen dependence on imports.
Culture of poverty
According to a 1973 study of Sylvia H. Guerrero in Metro Manila, the "culture of poverty" in the Philippines is characterized by a lack of aspirations, reliance on chance, and disillusionment with the social, economic, and political conditions.
Another factor that contributes to these bleak situations were corruption, unresolved legal cases, and high crime rates. Filipinos' patience, tolerance for frustration, and religiosity allow a culture of poverty to persist in Philippine society.
Poverty during the COVID-19 pandemic From 2018 to 2021, amid the economic recession caused by the COVID-19 pandemic, an estimated 2.3 million Filipinos fell into poverty; this has been attributed in part to lockdowns enacted to control the spread of the disease and possibly exacerbated by poor governance.
Threshold and incidence Poverty threshold and incidence vary by geographic region. The threshold ranged from PHP 12,241 to PHP15,713, and the incidence rate ranged from 1.1% to 2 4.2% .
Poverty among farmers
Poverty among Indigenous peoples